Traders stick to guns, go on strike as planned

ISLAMABAD: Despite Federal Board of Revenue ‘s (FBR’s) assurance to traders’ community to amend the “Tajir Dost Scheme” including a reduction in tax rates, the traders backed by political parties such as Jamiat Ulema-e-Islam Fazal (JUI-F), Jamaat-e-Islami (JI) and Pakistan Tehreek-e-Insaf (PTI) have decided to observe country-wide strike on August 28 (today).The FBR, Tuesday, categorically conveyed to the traders community that “Tajir Dost Scheme” would be implemented at any cost and traders have to be registered and pay their due amount of taxes. The strikes and shutter down would not have any effect on the “Tajir Dost Scheme”, which would not be withdrawn.The FBR the other day invited all the traders to sit down and negotiate the differences with the tax authorities to find a solution but the leadership of Central Traders Association (CTA) led by Kashif Chaudhary and President All Pakistan Anjuman-i-Tajran Ajmal Baloch did not attend the meeting.High power bills, taxes: Traders call for countrywide strikeOn the conclusion of meeting with selected traders’ bodies at the FBR Headquarters on Tuesday, Chief Coordinator of the Tajir Dost Scheme Naeem Mir said that the FBR has agreed to amend the scheme as per recommendations of the traders. However, the FBR chairman has given a loud and clear message to the traders going on strike that the scheme would not be withdrawn. The scheme would be implemented at any cost for registration of traders. The traders have to pay their due amount of taxes in the national kitty. However, the monthly amount of tax is negotiable. The rate of monthly advance tax should be reasonable and there should not be a huge difference between rates of taxes between shopkeepers and traders. The FBR has also shown willingness to amend the relevant SRO to fulfil demands of the traders’ community, he said. Naeem Mir stated that the FBR will allow the traders’ committee to voluntarily decide about exemption, rates and payment of fixed tax in markets and shops based on their businesses and size of shops. Chief Coordinator of the Tajir Dost Scheme added that there is no justification of going for shutter down strike, keeping in view the FBR’s commitment to amend the scheme as per the traders’ desire.The FBR has chalked out monthly advance income tax table for traders in 42 cities of the country including Abbottabad, Attock, Bahawalnagar, Bahawalpur, Chakwal, Dera Ismail Khan, DG Khan, Faisalabad, Ghotki, Gujranwala, Gujrat, Gwadar, Hafizabad, Haripur, Hyderabad, Islamabad, Jhang, Jhelum, Karachi, Kasur, Khushab, Lahore, Larkana, Lasbela, Lodhran, Mandi Bahauddin, Mansehra, Mardan, Mirpurkhas, Multan, Nankana, Narowal, Peshawar, Quetta, Rahim Yar Khan, Rawalpindi, Sahiwal, Sargodha, Sheikhupura, Sialkot, Sukkur, and Toba Tek Singh.According to sources, the FBR officials informed the traders that the tax authority was ready to amend some clauses of the SRO of traders’ friendly scheme. The FBR is of the opinion that traders annually were making multibillion rupees and are not ready to pay taxes which the government has proposed with minimum ratio. Officials said that the FBR will soon issue a notification regarding the amendment in SRO including exempting small traders from taxation. It will introduce a simplest Income Tax form in Urdu language for the benefit of the traders. The FBR has also suggest not to tax traders with Rs100 million annual turnover sale volume and the tax authority is also likely to amend income tax table for the traders.The Central Organisation of Traders and All Pakistan Anjuman-e-Tajiran have called for the nationwide shutter-down strike in protest against the “trader-friendly” scheme and taxes.Kashif Chaudhary said, “The FBR was repeatedly trying to consult with me but we have made it clear to the authorities that we reject the so-called trader-friendly scheme as it is unworkable. The anti-trader scheme should be withdrawn immediately and withholding taxes on essential items such as pulses and flour must be abolished”. He said talks with the FBR in the past seven weeks have failed to bring anything positive. Kashif Chaudhary stated that the strike aims to safeguard the economy and prevent the closure of industries. He emphasised that the protest is not just a leadership issue but a matter of business survival. “The strike on August 28 will be observed in Sindh including Karachi, and across the country. We are not only protesting against the exorbitant electricity bills but also against the IPPs’ fraudulent agreements, the Rs2,800 billion in payments, and the 13 taxes on electricity. No individual or business can sustain such high electricity bills,” Chaudhary said.He criticised the imposition of a Rs60,000 monthly tax on shops, describing it as a form of oppression. “With this tax, shopkeepers will essentially have to work as tax collectors for the FBR. We reject advance tax notices and will resist any FBR team attempting to inspect the markets. If they come, we will encircle them,” he warned. Chaudhary also highlighted the need for the reversal of the trader-friendly scheme and stressed that negotiations would be sought directly with the prime minister as no one below his level has the authority to amend the IMF deal-related policies. All Pakistan Anjuman-i-Tajran President Ajmal Baloch, another prominent trader leader while rejecting the government’s move said that the traders will observe countrywide strike on Wednesday as the government has neglected people’s welfare.“The rulers have imposed taxes on food items and increased electricity tariffs leading to suicides over high bills. Instead of easing the burden, they have exacerbated the crisis. The ruling class has not curtailed its luxuries but instead increased our hardships,” Baloch said.Copyright Business Recorder, 2024